People want a wide variety of products at their fingertips, no matter where they shop or what they’re shopping for. Gaining loyalty from today’s customers requires delivering high-demand products at exactly the right time.
Because of increased supply chain, inventory, and labor challenges, business leaders must transform how they fulfill orders and deliver products.
Enter dropshipping, a business method where sellers purchase inventory as needed from a third party—usually a wholesaler or manufacturer—to fulfill orders. Dropshipping lets you fulfill orders without needing to keep products in stock.
“Dropshipping is expected to grow from $197 billion in 2022 to $476 billion in 2026.”
Statista, Global Dropshipping Market Size
Manufacturers are increasingly friendly toward dropshipping. Many large companies have invested considerably in dropshipping, and distributors are jumping in head-first.
There are many reasons to explore dropshipping, but be careful, there are also many unique challenges, including low margins, liability issues, and high competition.
Key Advantages of Dropshipping
Market Research
When you’re considering new brands, products, or product lines, dropshipping is a great way to test the waters and assess whether these new items resonate with your customers—before making costly investments in inventory.
Line Expansion
Dropshipping lets you offer items that are similar or complementary to items you’re already selling.
Niche Products
If you’ve developed a niche in the marketplace, dropshipping provides opportunities to help you further develop or defend your niche.
Differentiation
Stop selling the same products as your competitors. Dropshipping helps you sell alternative products and solutions that set you apart from your competitors.
Seasonal items
Demand for some items may only occur for a few short months of the year. Using dropshipping for these items may offer significant savings on inventory and holding costs.
Bundling
Dropshipping provides access to thousands of additional SKUs. This lets you create an endless variety of bundles and options for your customers.
Expertise
As you’ve built your business, you’ve likely built a significant pool of industry expertise. Dropshipping allows you to extend your expertise by offering additional products, bundles, or solutions.
Schedule a Free Dropshipping Assessment
Ultimately, your dropshipping strategy should align with your corporate strategy to expand your inventory, grow e-commerce revenue, test new markets, and make your customers happy.
We invite you to schedule a free dropshipping assessment. The strategic assessment will include an analysis of your current business objectives and an evaluation of your technical environment.
We’ll evaluate:
- Your current and planned dropshipping objectives
- Your product lines, suppliers, and competitors
- Your suppliers’ ability and readiness to support dropshipping operations
- Your e-commerce and technical environments
After a 30-minute call to gather information from your team, we’ll perform an assessment and deliver your analysis and recommendations.
